More than any other government organisation, HMRC is subject to rumours, hearsay and untruths. They've recently issued a press release, aimed to debunk the most common myths - which may prove useful to bookkeepers looking to educate their clients.
1. ‘HMRC hasn’t been in touch, so I don’t need to file a tax return’. Not the case and it is for the individual to determine whether there is an obligation to file a return. This debunked myth contains a link to the register for Self-Assessment tool which shows why someone might need to register (if they have not already)
2. ‘I have to pay the tax at the same time as filing my return’. Not the case and any tax owed must be paid by 31 January 2025 regardless of when the return is filed
3. ‘I don’t owe any tax, so I don’t need to file a return’. It may be the case that there is no tax liability, however, if there is an obligation to file a return it is for HMRC to determine this, not the taxpayer
4. ‘HMRC will take me out of Self-Assessment if I no longer need to file a return’. They won’t always do this and, when they do, they will write to the taxpayer. Until such communication is received, if the taxpayer is registered to complete a return then they must do so. If they have an obligation to register then they must do this and file the return
5. ‘HMRC has launched a crackdown on people selling their possessions online and now I will have to file a Self-Assessment return and pay tax on the items I sold after clearing out the attic’. It is true that there was speculation in some areas of the press regarding this, however, the reality is that the obligation to pay Income Tax when selling online is unchanged
For Bookkeepers
The most useful link in this press release is the one to the tool that determines whether there is an obligation to complete a tax return. If there is an obligation to file, there is an obligation to register for Self-Assessment (and file afterwards).
